New African Power Player Cennergi Searches for Established Partners

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Cennergi (Centurion, South Africa), a joint venture company formed in 2012 to provide energy solutions for Africa, plans to be involved in the ownership of 16,000 megawatts (MW) of energy assets by 2025.

The two partner companies that formed Cennergi--Tata Power (BSE:500400) Mumbai, India) and resources-based company Exxaro (OTC:EXXAY) (Centurion)--are now looking for established and credible African partners who own profitable, high-quality, operational energy-generating assets, not limited to renewable to boost its asset portfolio on the continent.

"Cennergi is a long-term player and is serious about investing in Africa on a large scale," said Thomas Garner, the chief executive officer of Cennergi. "The company can offer full support, and we are considering assets in generation."

Launching its operations in the South African renewable energy sector last year, the company was awarded bids for windfarm projects in the Eastern Cape province through participation in the Department of Energy's Renewable Energy Independent Power Producer Procurement Program (REIPPPP). With this early achievement, which accents its focus on cleaner energy, the company will focus on building a diversified portfolio of energy assets, including coal, gas, hydro, wind and solar.

"While we strongly believe in the REIPPPP in South Africa, we are casting our net wider," said Wendy Green, business development manager. "We want to participate in all areas of energy generation. We are well-positioned to do so, with the shareholders Tata Power and Exxaro giving us access to capital and operational expertise."

Tata has decades of experience in power generation and distribution, and Exxaro gives access to its African heritage, project management and technical expertise to deliver on its vision of owning high-quality operating assets.

Demetri Pappadopolous, executive committee member and strategic adviser, said that the vision cannot be achieved by developing all the assets from scratch. "So we are actively pursuing and scrutinizing credible partners."

For related information, see April 10, 2012, article - Tata-Exxaro Venture Targets 16,000 Megawatts of Southern African Power Generation Capacity.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.